Delhivery acquires Spoton to strengthen its B2B express logistics

by Business | 25-08-2021 | 362 views

New Delhi: Delhivery announced the much-awaited acquisition of the Bengaluru-based Spoton Logistics for an undisclosed sum, a move that will further strengthen its existing B2B capabilities before the planned initial public offering (IPO).

“Samara Capital and Xponentia, who together acquired Spoton from IEP in 2018, are making a full exit for cash as part of the transaction,” reports IANS. Spoton Logistics is a leading multimodal express logistics and supply chain solutions company in the country.

Abhik Mitra, Managing Director, Spoton Logistics, said, "The Spoton team and I are hugely excited to be part of Delhivery's journey of growth and value-creation. The Delhivery team has done a tremendous job in creating a leading end-to-end logistics, and supply chain services company in India in a short span. Spoton is known for its focus on customer relationships and service quality, professional management and technology and engineering, which are values shared by Delhivery as well, and that sets us up to together be one of India's leading logistics companies. We will continue to invest in improving our clients' businesses through our investments in people, technology, network and infrastructure."

In July, Delhivery announced that global giant FedEx will make a $100 million equity investment in the company to unlock India's international trade potential.

Delhivery in May announced that it raised $275 million in a primary funding round led by Fidelity Management and Research Company. With the fresh capital, Delhivery's valuation was expected to rise to over $3 billion.

Kotak Mahindra Capital Co. Ltd. acted as the financial adviser and Shardul Amarchand Mangaldas & Co. as legal adviser to Delhivery for this transaction.

According to Pankaj Kalra, senior executive director at Kotak Investment Banking, the acquisition of Spoton Logistics will help Delhivery emerge as one of the largest express less-than-load solution providers in India and serve new clients and industries.

“With more than 1,000 logistics companies in the country, we believe that the $300 billion logistic industry stands on the cusp of consolidation,” he said. “We expect only 8-10 large logistics firms to dominate the market. This transaction is another step in this direction.”

Delhivery is a leading end-to-end logistics and supply chain services company in India. With its nationwide network covering over 19,400 pin codes, the company provides a full suite of logistics services such as express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B & B2C warehousing, End-to-end supply chain services, and technology services. Delhivery has successfully fulfilled over 1 billion shipments since inception and today works with over 17,000 customers, including large & small e-commerce participants, SMEs, and other enterprises & brands. For more information about Delhivery, please visit www.delhivery.com .  

Spoton Logistics, an engineering and technology-driven logistics company, is a leading multimodal express logistics and supply chain solutions company in India. The company started its journey in 2012 when private equity firm India Equity Partners bought the domestic business from TNT India. In 2018, Spoton partnered with a consortium of investors led by Samara Capital and Xponentia Fund Partners to build the next stage of its growth. A well-established network, and professional resources allows it to service customers in an array of industries, including Hi-tech, Automotive, Engineering, Pharmaceutical, Electronics & Electricals, and Lifestyle, Retail & eCommerce.

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